Lemonade's Stock Doubles in 2025, Aiming for EBITDA Breakeven in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Stock Doubling: Lemonade's stock surged 114% in 2025, recovering from a challenging period between 2022-2024, indicating strong market recovery potential and investor interest.
- Loss Ratio Improvement: The company has maintained a loss ratio below its target of 75% over the past year, reflecting effective risk management and enhancing investor confidence in its profitability trajectory.
- Positive Cash Flow: Lemonade is now cash flow positive and expects to achieve EBITDA breakeven by the end of 2026, marking a significant milestone in its profitability journey that could attract more investor attention.
- Growth in Auto Insurance: The ramp-up of its auto insurance product significantly boosts revenue potential, likely driving overall company growth and solidifying its market position in the insurtech sector.
LMND
$79.8+Infinity%1D
Analyst Views on LMND
Wall Street analysts forecast LMND stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMND is 52.20 USD with a low forecast of 33.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
1 Buy
3 Hold
2 Sell
Hold
Current: 78.920
Low
33.00
Averages
52.20
High
80.00
Current: 78.920
Low
33.00
Averages
52.20
High
80.00
About LMND
Lemonade, Inc. offers renters, homeowners, car, pet, and life insurance. The Company operates through the United States, Europe, including the United Kingdom, providing insurance products to customers through various sales channels. The Company's digital substrate enables it to integrate marketing and onboarding with underwriting and claims processing, collecting, and deploying data. Its technology includes Data Advantage, AI Maya, AI Jim, CX.AI, Forensic Graph, Blender, and Cooper. AI Maya, its onboarding and customer experience bot, uses natural language to guide customers in joining the Company. AI Jim, its claims bot, takes the first notice of loss from its customer without human intervention. It offers pet insurance that covers diagnostics, procedures, medication, accidents or illness. Even its basic pet insurance offering covers blood tests, urinalysis, lab work, and computed tomography scans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
